Bitcoin (BTC) is rising, analysts are watching the Crypto Relief Rally this summer

Bitcoin and Ethereum increased above key psychological levels on Monday night as the global market value of cryptocurrency rose 4.3% to $ 911.3 billion at the time of the press release.

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Why it matters: Risk assets increased as the weekend for the fourth of July drew to a close. Bitcoin and Ethereum were seen trading above the $ 20,000 and $ 1,000 levels, respectively.

On Sunday, Bitcoin fell as low as $ 18,966.95. The largest cryptocurrency by market value is currently trading almost 6.1% above this level.

S&P 500 and Nasdaq futures traded 0.6% and 0.8% higher, respectively, at the time of going to press.

Bitcoin closed for the fourth week in a row below its 200 weekly moving average. This has usually marked previous market bottoms, according to Delphi Digital.

Bitcoin price performance since January – with permission from Delphi Digital

“This is the longest BTC has stayed below its weekly average of 200, and even surpasses the COVID capitulation in March 2020,” the cryptocurrency research company said in a note, seen by Benzinga.

The top cryptocurrency continues its inverse correlation with the dollar, while its strong correlation with the Nasdaq continues. Delphi Digital noted an increase in accumulation as prices fall. Addresses with at least 1 BTC recently reached a record high of 877,501.

Apart from the current peak, negative news continues to weaken sentiment in the cryptocurrency market.

Alternative.me’s “Cryptophobia and Greed Index” signaled “Extreme Fear” at the time of press. The current value of the index is 19, while last week it was 10. A value of 0 means “extreme fear”, while 100 indicates “extreme greed.”

“How low Bitcoin goes depends on whether the stock market reached a bottom and whether no major crypto company falls into liquidation,” said OANDA Senior Market Analyst Edward Moya.

“Sentiment will take some time to improve, especially after many expected cryptocurrencies fall apart,” Moya said. The analyst referred to eToro leave its SPAC merger to become public while BlockFi try to stay afloat.

Cryptocurrency Trading Company Vauld was the last to suspend withdrawals over the weekend due to financial challenges amid volatile market conditions.

Chartist Ali Martinez cited $ 19,500 as a high level of resistance for BItcoin and said that if the apex coin manages to print a daily close above it, then “significant upward price action” can be expected.

$ 19,500 is a pretty high level of resistance too #Bitcoin as @inn in the block IOMAP shows. But if $ BTC manages to print a daily closing over it, and then expect significant price increases. https://t.co/ipbAOzYq8i

– Ali Martinez (@ali_charts) July 4, 2022

Cryptocurrency trader Michael van de Poppe noted bullish divergence on the daily Bitcoin chart on CME futures. “Turn over $ 20K and we will be good to go towards $ 23K and the summer relief rally. Finally, said the analyst.

Bullish divergence on the daily time frame for #Bitcoin on CME futures.

Turn around $ 20K and we will be good to go towards $ 23K and the summer relief rally.

Finally. pic.twitter.com/mcLSvzvpyM

– Michaël van de Poppe (@CryptoMichNL) July 4, 2022

Ethereum continues to flow into exchanges with a quick cut, according to Santiment. The market intelligence platform said that there is a “higher risk” of a sale while coins rise in stock market wallets.

#EthereumThe price has dropped slightly to ~ $ 1120 on the US birthday. This said, $ ETH continues to move rapidly back to stock markets and is close to breaking 2022 highs. There is a higher risk of sale while coins rise on stock market wallets. pic.twitter.com/JcmrHp80VK

– Santiment (@santimentfeed) July 4, 2022

Read next: Here’s why Bitcoin just had its worst quarter in over a decade; Ethereum saw its worst quarter ever

Photo via BBbirdZ on Shutterstock